How to Obtain a Non ChexSystems Bank Account Without Being Scammed

Predatory lending exists in the mortgage industry. It's typically when a mortgage broker add's on unnecessary fee's to a bad credit application, because he or she knows that the applicant is in a desperate situation.

Predatory banking can also exist for those who have ended up in the ChexSystems.

ChexSystems is a network of financial institutions (mainly banks) that regularly contribute information about account holders that mishandle their checking or savings accounts. Nearly all banks within the US are a part of this consortium.

Bounce a check, and not pay it off in a timely manner, and you could end up in the ChexSystems. Even if you receive a bogus check, and the bank suspects foul play, you could land in the ChexSystems hot seat.

And the sentence for this financial felony isn't light.

If the bank that put you in the ChexSystems refuses to release your name from the ChexSystems database, you'll find it close to impossible to obtain a bank account of any sort for 5 years.

Even if you pay off the offending debt, the bank could still hold you a ChexSystems prisoner. Wicked, but 100% true.

So naturally when you have a situation where people are stuck between a rock and a hard place, the vultures come out to feed. This is what you may encounter if you're looking for a non ChexSystems bank account.

Before you pay money to any service that claims to give you a non ChexSystems bank account be sure it passes the following tests with flying colors.

  • Make sure the bank is FDIC insured.

    According to the FDIC web site:

    "The FDIC ? short for the Federal Deposit Insurance Corporation ? is an independent agency of the United States government. The FDIC protects you against the loss of your deposits if an FDIC - insured bank or savings association fails. FDIC insurance is backed by the full faith and credit of the United States government."

    In a nutshell, if you decide to open a bank account with an institution that isn't FDIC insured, you could basically lose all of your money if that institution goes out of business. So it's extremely important to verify the banks status before you open an account.

    You can easily verify that a bank is FDIC insured at the FDIC web site.

  • If it's a credit union, make sure it's NCUSIF insured.

    NCUSIF insurance is similar to FDIC insurance, except it's for credit unions.

    According to the National Credit Union Association web site:

    "The shares in your credit union are insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of NCUA. Established by Congress in 1970 to insure member share accounts at federally insured credit unions, the NCUSIF is managed by NCUA under the direction of the three-person NCUA Board. Your share insurance is similar to the deposit insurance protection offered by the Federal Deposit Insurance Corporation (FDIC)."

    All credit unions that are NCUSIF insured can be found at (

  • Make sure the institution has a physical branch.

    This is one of the easiest ways to weed out the bad seeds. Banks with physical branches are always legitimate financial institutions.

  • Do some background work on the bank.

    Do a WHOIS search to view the registrant for the banks domain name. If it's a single person, that should raise a red flag. It should always be the banks name or corporate name.

    Look on the banks web site. There should be separate telephone and fax numbers, and a legitimate street address - not a PO box.

    You can always call 411 to confirm that the telephone number matches the address listed. But also keep in mind that some banks have a central location where they answer general calls.

  • Make sure the bank DOESN'T require you to use direct deposit in order to open the account.

    There are some financial services that offer checkless checking accounts. (This isn't a scam as far as I can tell.)

    But what if you don't get direct deposit? Or what happens if you switch jobs, and no longer receive your checks through direct deposit? Then you're basically back at square one.

    And what if you want to use checks? I mean a checkless checking account kind of defeats the purpose of obtaining a checking account at all.

  • Make sure the institution doesn't charge you for common items like monthly statements, telephone services, and withdrawls.

    I recently noticed a financial service charging outrageous fee's for options that are normally provided for free through regular banks and credit unions.

    They were charging for everything but the kitchen sink, including: a fee to check your balance at the ATM, a fee to receive a monthly statement, a fee if you wanted to return something you purchased from a retail store, a fee for using their automated telephone service. And that was just the tip of the iceberg!

    Even though you're in the ChexSystems doesn't mean you should play victim to financially draining ploys like these. There are always better alternatives waiting in the wings.

    Alexis Dawes is the author of "How To Get a Bank Account Even If You're in the ChexSystem." This report offers information on non chexsystems banks that will give you a checking account, even if you're in the Chexsystems. Alexis has personally used all of the recommended banks. You can get more information at (

    In The News:

    This RSS feed URL is deprecated, please update. New URLs can be found in the footers at

    Salt Lake Tribune

    Two US Senate candidates from Utah have failed to file personal finance reports as required by federal law
    Salt Lake Tribune
    Washington • Two candidates for the U.S. Senate seat from Utah – Republicans Mike Kennedy and Larry Meyers — have not filed their personal financial disclosures as required under federal law. The two candidates, who have each raised more than the $5 ...


    6 personal finance habits everyone should get into - CNN Money
    These tips will help you spend less and save more. Talk about a win-win.

    and more »

    Milwaukee Journal Sentinel

    Area schools using creative approaches to teach personal finance to students
    Milwaukee Journal Sentinel
    The surprise of the realities behind real-life finances is a common refrain heard by students who have experienced a financial simulation program, and for a Kettle Moraine High School student, things were no different. Kettle Moraine junior Madeline ... WCSH-WLBZ

    Learning about personal finance at the food pantry WCSH-WLBZ
    Town and Country Federal Credit union saw the great work the Food Cupboard was doing and wanted to become more involved. Officials say often times, the people Laurie works with with have not received much education around basic budgeting. "We saw an ...

    New York Times

    A Personal Finance Book Based on Happiness Instead of Money ...
    New York Times
    An updated version of a classic asks readers if more is really better and suggests that they weigh purchases against the work needed to make them.

    and more »


    Happy Tax Day! Personal finance tips for the financially clueless
    It's Tax Day today which means there's a good chance that pretty soon you might have a couple of bucks coming your way in tax refunds. Then again, maybe not. Not everyone is raised to be financially savvy, but that doesn't mean you're forever doomed to ... WCSH-WLBZ

    Feed Maine: Learning about personal finance at the food pantry WCSH-WLBZ
    The South Portland Food Cupboard has partnered with Town and Country Federal Credit Union to feed hungry Mainers, and also help them find financial security. Related Videos. Drive to help seniors facing food insecurity · LOCAL · Let's raise enough ...


    Goldman Sachs buys personal finance start-up Clarity Money
    NEW YORK (Reuters) - Goldman Sachs Group Inc bought Clarity Money, a personal finance startup, to bolster its Marcus online lending business, it said Sunday. A Goldman Sachs sign is displayed inside the company's post on the floor of the New York Stock ...
    Goldman Sachs Buys Personal Finance App Clarity
    Goldman Sachs Grabs Personal-Finance App 'Clarity Money'MediaPost Communications
    Goldman buys personal finance app Clarity MoneyFinancial Times
    all 339 news articles »

    The Advocate

    Junior Achievement program addresses teens' personal finance ...
    The Advocate
    STAMFORD — By the time he became a high-school senior, Mike Guarnieri had experience as president of a company — albeit, a very small one. Guarnieri was in the Junior Achievement program while at Westhill High in the 1980s. The group met after school ...

    and more »


    What Celebrities Could Teach you About Personal Finance
    Your Cheddar host Tim Stenovec is joined by certified financial planner Bobbi Rebell at FinCon to discuss how to be a financial grownup. In Rebell's new book, she talks about how people look up to successful celebs but often forget about their ...

    Google News

  • Live Green; Save Green!

    Have you seen the recent article on a new "green"... Read More

    The Benefits of Banking Online

    How many drawers did you have to look through to... Read More

    Introduction to Australian Superannuation

    Australians, in general, constitute some of the worst savers in... Read More

    Budgets And Eating - Can They Co-Exist?

    Whatever your reason for having a tight budget, the truth... Read More

    Your Dry Cleaner?s Double Standard

    Women are charged more for dry cleaning services. Don't fume,... Read More

    The Good and the Bad of Money Management

    Good money management needn't be difficult. In fact, there a... Read More

    A Fresh Start for Family Finances in 2005

    While 40% to 50% of us make New Year's resolutions... Read More

    Identity Theft is a Major Problem: Whose Responsibility is It to Protect the Consumer?

    We have heard a lot about consumers' personal information getting... Read More

    How To Place an Online Order for Checks ? It is Easy as 1-2-3

    If You Have an Existing Account and 5 Minutes, You... Read More

    UK Graduates Looking Short-Term At Their Long-Term Financial Responsibilities

    With almost two thirds of university entrants from England and... Read More

    Stretching Your Grocery Dollars

    Shopping for groceries is an inevitable fact of our ever... Read More

    Budgeting is Essential for a Single Mothers Success

    Today many women are struggling with debt and it's even... Read More

    Students Investing in Their Future Need to Manage Their Finances Today

    With the A-level results coming out, the long wait for... Read More

    Money Matters - Really!

    One of the biggest challenges facing black RELATIONSHIPS today are... Read More

    Check Facts and Figures

    Are you a check fanatic? Don't worry, you aren't alone.... Read More

    What?s New in Checking ? From Designs to Photos

    Just about everyone has a checking account. Checks present easy... Read More

    Improving Your Financial Position

    If you want money you need to learn how to... Read More

    Budget Planning - Its Elementary My Dear Watson

    Does it feel like you have to be Sherlock Holmes... Read More

    Bankruptcy Chapters Explained

    Chapter 7The potential chapter 7 debtor should understand that a... Read More

    How to Save for A Down Payment

    Saving for a Down Payment is hard work, so it's... Read More

    Personal Finance ? Why You Should Compare, not Despair

    Sorting out your personal finances can be a tricky and... Read More

    Estate Planning Basics

    You have probably accomplished a great deal with your life.... Read More

    How Check 21 Affects You

    The Check 21 Law is the new federal law for... Read More

    Budgeting Tips to Save Real Money

    Sticking to a budget can be difficult, but with so... Read More

    Budgeting: A Tough Love Way to Handle Your Household Budget

    Developing and living by a household budget is by far... Read More